Invesco has launched an exchange-traded fund designed to give investors exposure to the top 45% of companies in the world Nasdaq-100 Index.
Brian Hartigan, the company's global head of ETFs and index instruments, will take over Invesco QQQ Trust (QQQ)the fifth largest ETF in the world according to VettaFi. Now Hartigan is taking over the Invesco Top QQQ ETF (QBIG), which launched on December 4th.
According to Hartigan, there is a need to capture the megacap concentration history within the Nasdaq.
“This is what investors have asked of us. How can I do that, really leverage that exposure and the majority of the return drivers in the Nasdaq,” Hartigan said on CNBC’s “ETF Edge” this week.
On Wednesday, some of the top holdings were the Invesco Top QQQ ETF Apple, Nvidia And Microsoftaccording to Invesco's website.
Hartigan points out that investors can balance their portfolio risk with similar funds.
“You have the precision that investors are using ETFs to really offset under- or over-concentration in their portfolios,” he said.
As of Friday's close, the Invesco Top QQQ ETF is up about 5.5% since its debut.
Nate Geraci, president of The ETF Store, notes that other new funds have been launched to allow investors to focus on megacaps.
“We have seen other issuers launch products that either target or specifically avoid the largest mega-cap names. And that shows that issuers are clearly aware of this market battle at the moment. I think we'll continue to do that.” See how this tug-of-war plays out in the future,” he said.